How to Use AI in Fintech and Improve Your Financial Services
The successful integration of AI tech into daily life has sped innovation leaps and bounds past the chess-dominating curiosity that was the state of AI only a short time ago. Once we saw what it can really do — how virtual assistants and chatbots serve our needs at a fraction of the manual cost; how automated analyses scour data and deliver critical insights — developers and consumers were quick to capitalize on AI’s potential. The Fintech sector alone is ripe with examples of AI’s power to overhaul an entire industry.
Customer Service Reimagined
The human touch is certainly important in customer service, but people are limited in many ways; we make mistakes, misread the data, and our work capacity is finite. AI, on the other hand, supplements the shortcomings of traditional customer support. Chatbots are always on the clock to assist fintech users with transactions or provide notifications regarding account activity. They’re also capable of communication; chatbots can answer basic questions if human representatives are unavailable.
Robo-advisors are yet another manifestation of AI’s customer service capability. They build risk predictions via algorithms, and provide financial advice with minimal human input. Investors in search of strategic advice can look to robo-advisors to manage and optimize their assets, at a much lower cost than their human counterparts.
Malicious actors utilize millions of attack strategies, many of which may be imperceptible to the human eye. However, technologies such as machine learning are rapidly developing the capability to analyze and detect patterns of illicit activity. Many banks, for instance, employ AI-based security programs to record customers’ financial habits and alert customers in the event of deviations, such as a large purchase made outside of a customer’s service location.
Safer P2P Lending
Borrowing money involves substantial risk, much of which can be mitigated thanks to the analytic prowess of AI. P2P (peer to per) lending company Kabbage utilizes an automated platform to provide funding directly to small businesses and entrepreneurs. Kabbage and similar companies use neural networks to asses credit scores and lending risk, and scan documents for fraud.
Accurate Insurance Prices/Payments
Safe driving sensors and other IoT (internet of things) applications are already being implemented by major insurance companies. Such tools enable safe drivers to pay a premium that reflects the care they take to avoid accidents. In addition, virtual claims adjusters available via online platforms are simplifying the process of settling claims after accidents; they offer accurate damage assessments, as well as monitoring for potential fraud.